Weekly round-up: Ferro alloys prices remain rangebound on limited demand

Prices of ferro alloys in the domestic market remained rangebound this week due to limited demand. Demand remained soft due to mixed sentiments in both the domestic and international markets.

Additionally, manganese alloys prices declined marginally this week amid modest steel demand in the domestic market. However, manganese ore and ferro chrome prices showed an upward trend as the major mills accepted the price uptick. Manganese alloys received relatively few overseas inquiries resulting in weak demand.

Manganese ore
Global manganese ore import prices for Mn: 44-46% rose by 12% w-o-w. Prices of Mn37% grade were at $4.65/dmtu, up 3%, Mn44% stood at $6.1/dmtu, while Mn46% grade was offered at $6.5/dmtu.

IEX power
Surplus bid availablity on the seller side further pulled down electricity prices this week. According to Indian Energy Exchange (IEX), the weekly average spot prices (29 January - 4 February) in the day-ahead market registered a dip of 4% w-o-w to INR 4.701/unit as against INR 4.878/unit last week.

Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, were nearly stable w-o-w. The 60-14 grade remained stable at $967/t, while 65-16 material was offered at $1,065/t, down 1% w-o-w. Due to fewer queries last week and limited demand from abroad, prices decreased.
Meanwhile, weekly average prices of silico manganese in the domestic market dropped 3% w-o-w to INR 75,200/t ex-Durgapur, INR 75,960/t ex-Raipur, down 2%, and INR 75,360/t ex-Vizag, down 2% w-o-w. Lack of local demand for silico manganese and liquidity issues drove prices lower.

Ferro manganese
Export prices of HC70% ferro manganese fell by 1% w-o-w to $960/t. Prices of HC75% were at $1,049/t, dipping 1% w-o-w.
However, domestic ferro manganese prices were range-bound w-o-w at INR 77,160/t ex-Durgapur, dropping 2%, while ex-Raipur prices were stable at INR 78,120/t. Due to restricted demand for special steels and the imbalance in supply and demand, prices of ferro manganese remained rangebound.

Ferro chrome
According to SteelMint assessment on 2 February, ferro chrome (HC60%) offers were hovering around INR 116,000-117,000/t exw-Jajpur, with limited bookings in the domestic market this week despite strong demand, as the majority of buyers were waiting for FACOR's ferro chrome auction on 2 February. Ferro chrome tender prices by Chinese stainless steel majors for February delivery increased by RMB 450/t ($67/t) m-o-m. Furthermore, Indian ferro chrome prices may rise in April as South Africa's electricity charges are set to rise.

Ferro silicon
Ferro silicon (70%) smelters in Bhutan began offering at INR 126,000/t exw on 3 February. Meanwhile, Guwahati's offers were at INR 125,000/t exw, with prices increasing w-o-w in early February due to restrictions on imported material from sellers who did not have a BIS certificate. Meanwhile, demand from both the export and domestic markets was moderate, but a few sellers were more focused on the export market due to higher returns.

Trade

SteelMint recorded bulk deals of around 8,000 t of ferro alloys this week. Out of this, manganese deals comprised around 5,700 t, ferro chrome 1,600 t, and ferro silicon around 700 t.

Tenders and auctions

• Chinese stainless steel major, Taiyuan Iron and Steel Corporation (TISCO), has raised low-carbon (LC) ferro chrome (Cr:60%, C:0.25%) purchase prices by RMB 800/t ($118/t) m-o-m to RMB 15,700/t ($2,325/t) for February. Prices are delivered to plant and include taxes. The company increased purchase prices considering high raw material costs and supply-demand mismatch.
  
  
• Vedanta subsidiary, Ferro Alloys Corporation Limited (FACOR), had an auction scheduled for high-carbon ferro chrome of different grades and sizes on 2 February. At the last auction on 17 January, the bigger lot of 10-150 mm of ferro chrome fetched an H1 price of INR 110,300/t, which was higher by 4% than the base price.
  
  
• SAIL floated a purchase tender for 200 t of low-carbon (HC) ferro chrome (Cr-60%, C-0.1% max, 10-30mm) for its Bhilai Steel Plant in Chhattisgarh. The due date for submission of bids is 9 February. The highest-priced bid elimination is applicable for the reverse auction qualification rule.
  
  
• Industrial Development Corporation of Odisha Limited (IDCOL) scheduled an auction for sale of 605 t of high-carbon ferro chrome (lumps, chips and powder) from its Jajpur plant on the MSTC platform on 3 February.
  
  
• China's stainless steel giant Tsingshan hiked ferro chrome tender prices by RMB 450/t ($67/t) m-o-m for February. The current price for 50% Cr material stands at RMB 9,145/t ($1,354/t) DAP, including taxes, with delivery latest before 10 March. The delivery price ex-Tianjin port will be lower by RMB 150/t ($22/t). The current price of ferro chrome (HC-50%) is RMB 8,750/t ($1,295/t) ex-Tianjin.
  
  
• Chinese stainless steel producer Taiyuan Iron and Steel Corporation (TISCO) has increased ferro chrome (HC 50%) purchase prices for February 2023 by RMB 450/t ($67/t) m-o-m to to RMB 8,945/t ($1,324/t) DAP, including taxes. Stainless steel makers have returned to work after the holidays and operating rates are increasing resulting in a steady release in demand. This has kept ferro chrome prices supported.
  
  
• Rashtriya Ispat Nigam Ltd (RINL), the corporate entity of Vizag Steel, invited bids for procurement of 1,800 t (10-100 mm) of HC ferro chrome (60%) for six months from the purchase order date (tentative supply period: February to July 2023).
  
  
• India's Ministry of Defence floated a purchase tender for 239 t of ferro silicon (Si-70%, size: 40-150 mm) for its Metal and Steel Factory in West Bengal. The last date for bid submission is 13 February and the bid-offer is valid for 180 days from the date of the auction.
  
  
• State-owned SAIL concluded a reverse auction for 15,100 t of silico manganese (60-15, size:25-50mm) for its Durgapur Steel Plant, West Bengal, on 31 January. The material was booked at around INR 87,715/t on FOR basis, inclusive of GST and GEM portal charges. After realisation, prices are at around INR 74,000/t FOR, excluding GST and GEM portal charges.
  
  
• MOIL raised prices for of grades of manganese ore for February on limited supply of around 59,401 t manganese ore available for the remainder of Q1CY'23. In order to maintain price parity with imported manganese ore offers, MOIL raised prices for grades above Mn:44% by 6%. Prices of all the other ferro grades with manganese content less than 44%, SMGR (30%, 25%), fines, and chemical grades have been increased by 5% since 1 January.
  
  
• India's Ministry of Defence floated a purchase tender for 19.5 t of ferro molybdenum (FeMo- 63%, Size 25-50mm) for its Metal and Steel Factory. The last date for bid submission is 13 February 2023 and the bid-offer is valid for 180 days from the date of the auction.
  
  
• SAIL concluded a reverse auction for 60 t of ferro vanadium (V: 50% Min, size:25-50mm) for its Durgapur Steel Plant (DSP) on 31 January. The material was booked at around INR 2,067,250/t FOR on 50% prorate basis, inclusive of GST and GEM portal charges.
  
  
• SAIL invited a purchase tender for 50 t of low carbon (LC) ferro chrome (Cr: 60% min, C:0.1%, Size: 10-30mm) for its Rourkela Steel Plant, Odisha. The last date for bid submission is 18 February.
  
  
• Vedanta-FACOR held a ferro chrome auction on 2 February. The bigger lot of 10-150mm fetched an H1 price of INR 119,600/t ex-Jajpur, higher by 5% than the base price while the smaller lot of 10-150mm was booked at INR 118,900/t. According to sources, aggressive bidding occurred in anticipation of further price rise in the near term, and the entire quantity was booked.
  
  
• South 32 increased prices of Australian manganese ore lumps (Mn 45%) by $0.58/dmtu to $6/dmtu for March shipments. It also raised South African semi-carbonate manganese ore prices by $0.27/dmtu m-o-m to $4.65/dmtu. All prices are on CIF China basis. The price hike was primarily due to a surge in demand from China, sources informed.
  
  
• India's Ministry of Defence floated a purchase tender for 44.5 t of ferro silicon (Si-70% min, size: 40-150 mm) for its Metal and Steel Factory in West Bengal. The last date for bid submission is 13 February and the bid-offer is valid for 180 days from the date of the auction.
  
  
• SAIL has rescheduled a purchase tender for 11,249 t of silico manganese (60-15, size:10-50mm, P: 0.1% max) for its Bhilai Steel Plant (BSP), Chhattisgarh. The last date for bid submission is 11 February.
  
  
• Odisha Mining Corporation (OMC) will conduct an auction for 71,574 t of chrome ore and 28,987 t of manganese ore of different grades and sizes on 9 February. The material offered will be from OMC's Baripada, Rourekela and Talcher mining circles.
  
  
• SAIL's Chandrapur Ferro Alloys Plant (CFP) scheduled an auction for 600 t of silico manganese (Mn 51-56%, 0-3mm, 3-10mm) for 10 February. SteelMint's assessment of silico manganese (60-14) prices stood at INR 75,500/t exw-Raipur on 3 February.